Ibec’s latest Pay and Resourcing Forecast projects that Irish businesses will grant average pay increases of 3.1% in 2027, following a 3.5% rise across all sectors in 2026. The survey, which polled over 330 senior HR professionals, reveals that more than four in five employers expect to increase wages next year. This reflects a continued trend of wage growth, though at a slightly reduced pace compared to previous years.
While hiring intentions remain strong, the pace of expansion is easing. In 2027, 35% of companies plan to increase headcounts, a decline from 37% in 2026 and 41% in 2025. Permanent positions continue to dominate hiring plans, with 92% of new roles filled on a full-time basis last year—up from 89% in 2025. The primary drivers behind these expansions include rising production and demand for services, cited by 81% of respondents, followed by expansion into new markets at 74% and building a future talent pipeline at 56%.
Maeve McElwee, Ibec’s Executive Director of Employer Relations, emphasized that businesses maintain robust workforce flexibility despite hiring slowdowns. Permanent recruitment and skills training remain key priorities as companies adapt to global economic pressures. However, securing international talent has become increasingly difficult, with Irish Residence Permit processing times stretching to 17 weeks. These delays hinder both business travel and staffing efforts.
Shortages persist most severely in hospitality, construction, and care sectors, where competition for specialized skills is intensifying. The forecasted 3.1% wage increase for 2027, though lower than the 3.5% rise in 2026, is driven by competition for specialized skills, productivity, and business performance. Over the past three years, hourly wages have risen by 15%, while the minimum wage has increased by 32%, further squeezing employer budgets already burdened by high operational costs.
McElwee cautioned that continued wage hikes could push businesses toward financial strain, particularly in industries where labor costs outpace productivity gains. She advocated for expanded use of the National Training Fund to help workers transition into roles shaped by technological advancements, including artificial intelligence. Ireland’s workforce, she noted, holds strong potential to capitalize on these resources, but implementation delays could introduce avoidable economic risks.
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